EDITORIAL: Ban on printing of dollar bills might not make cents

By Enterprise editorial staff

Published 4:00 am, Monday, January 13, 2014

There's nothing new about proposals to stop printing dollar bills to save the government money, but the issue is getting more attention as deficits grow. Proponents of the move say it could save taxpayers $13.8 billion over 30 years because the average lifespan of a $1 bill is only 4.8 years. Dollar coins, however, would last at least 30 years.

The United States is actually one of the few western nations still using paper dollars. Many Americans also have stopped using cash for small purposes in favor of debit or credit cards.

But as always, the devil is in the details, and hidden ones at that. The switch to dollar coins could have unintended consequences that aren't reflected in cold statistics about the durability of a paper bill vs. a metal coin.

For example, many people would not want to carry around dollar coins in their pockets or purses because they would frankly be too heavy. That could cause a problem if they wanted to make a small purchase or use a vending machine.

Speaking of vending machines, virtually every one in the country would have to be retooled to accept dollar coins only. That will cost a lot of money, and guess who that will be passed on to?

The end of paper money could contribute to inflation, as merchants push the cost of some items closer to $5 so customers can pay for them with their smallest bill.

Congress has to factor these things into consideration before making a major change like this. If the shift happens, it needs to make sense (and cents) to avoid public backlash.